Why is iron ore leading the black? Is there any opportunity for steel products to make up for the increase?

Today’s steel market fluctuated slightly, with ups and downs, and the price center of gravity for threads, hot coils, and cold rolled products moved up slightly.
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Steel prices in the past two days are basically in a state of shock operation. It did not hit a new high in the rebound, and it did not give up the gains since June, basically a small change. But the bright spot of the market is iron ore, which has risen from around 700 yuan to nearly 800 yuan, and the spot price has generally risen by 40-50 yuan compared with a week ago. The overall performance is still the strongest in the black series.
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At present, the logic of steel rebound does not lie in iron ore, but iron ore does give greater cost support. This is mainly because capital has very low expectations for the production restriction policy. At the same time, 10 rounds of coke reduction have repaired the profit margin of steel products. The iron ore inventory in steel factories is at a low level, and daily consumption is not decreasing. This has become the main logic for the strength of iron ore. Prices do not rise, profit margins are compressed, and prices rise, which will stimulate further strengthening of iron ore prices.
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On the macro level, there have been a lot of bullish policies in the near future, but they have limited real impact on the black market. Most of the impacts remain at the level of sentiment and expectations, and it needs to be observed in the medium and long term.

From the current point of view, the rebound is tangled and the market is back to shock. The macro has certain expectations, and the industry has not accumulated new contradictions. The start-up of the blast furnace remains relatively high, but the high-frequency output has declined to a certain extent, the electric furnace and the long process have both reduced production to a certain extent, and the inventory is still in a state of decline. Therefore, the downward momentum is also insufficient. In the short term, we will continue to pay attention to changes in macro policies, market mentality, funds, and sentiment. It is expected that the shock operation will be the main trend, and the chance of a rebound cannot be ruled out.